By Jaboner Jackson 930 pm | Today the City of Los Angeles released its planned Memorandum of Understanding (MOU) between the City and AEG. We have read through the entire 111 pages and have summarized ten key points. If you would like to read the entire MOU, click here. But be sure to brush up on your NFL Stadium lingo so that you can fully understand the legalese by revisiting Stadium Geek Week first. (And yes, that is Rock Mayock coming out of the AEG offices in the photo in his normal "Casual Friday" business attire.)
Ten Key Points
1. No public funds would be used for Farmers Field.
2. AEG would pay fair market value for a 55 year land-lease, which is estimated to be $6.5 million, adjusted annually.
3. A new Convention Center Hall (which we have referred to as "Pico Hall" on this site) will be built by utilizing $275 million in tax-exempt bonds.
4. AEG would guarantee any shortfall the City might experience in making its debt payments on the $275 million for Pico Hall.
5. AEG is not expected to own a majority interest in the first NFL tenant of Farmers Field.
6. AEG would construct and operate two parking facilities on parcels currently owned by the City of Los Angeles. AEG would pay fair market value to lease these sites.
7. The City has included $150 million in G3 financing in determining the financing breakdown for Farmers Field.
8. No specific teams are mentioned in the MOU as being the future tenants of Farmers Field.
9. The land-lease for Staples Center will be extended by the City to mirror the land-lease for Farmers Field.
10. Farmers Field will break ground in 2012 and open in 2016, replete with 200 luxury suites and Personal Seat Licenses.
To summarize the summary: the NFL is coming back to Los Angeles. But we've been saying that for months already.